JOB ORDER CONTRACTING Cooperatives play an important role for real property owners, facilities manager, and contractors. As is the case for any business endeavor, it’s a benefit for all parties to do their homework.
Here are some tips for contractors considering working with JOB ORDER CONTRACTING Cooperatives or considering changes in within specific programs.
This particular document was circulated by the National Cooperative Purchasing Alliance, NCPA.
As a construction contractor considering a Job Order Contract (JOC), it is critical to be aware that all JOCs are not the same.
Job order contracting cooperatives – Contractor Info
Carefully review all of the Job Order Contract and all associated documents. Make certain that the roles, responsibilities, tools, requirements and liabilities associated with the JOC are specified.
Determine the answers to the following questions BEFORE you price or accept a Job Order Contract:
- Will you be able to perform?
- Will you work directly with the real property owner or a consultant?
- Will you be able to develop a positive, long term relationship with the owner?
- Will you earn a reasonable profit?
The following is a listing of Job Order Contract Do’s and Don’ts. This format is used to review the primary elements of a Job Order Contract from a “best practice” perspective with a focus upon the construction contractor. It is important to review all Job Order Contract provisions to assure avoidance of any unnecessary financial risk or potential legal issues.[1]
Job Order Contracting (JOC) is a competitively bid, firm-fixed price, Indefinite Delivery Indefinite Quantity (IDIQ) LEAN construction delivery method. It is also implemented by the United States Air Force under the term SABER. Although some basic attributes of a JOC were originally developed in the early 1980’s in Europe, JOC was greatly refined in the United States by the U.S. Army and U.S. Air Force in the late 1980’s and continues to be improved and expanded.
JOC FUNDAMENTALS and Job Order Contract Cooperatives – Job order contracting, like any LEAN best management process, has basic requirements that focus upon collaboration, transparency, quality, and continuous improvement.
- Early and ongoing involvement of ALL participants.
- Value and qualification based selection and procurement.
- Cost and accounting transparency via standardized cost data architectures, terms, and definitions.
- Shared risk/reward.
- Appropriate use of supporting technology.
- Centralized reporting and oversight with local empowerment, application, management – monitoring, metrics, and continuous improvement.
- Mutual respect.
IMPORTANT: If the Job Order Contract you are considering is not in alignment with these core best practices, it is recommended that you discuss the document in more detail with appropriate parties, including, but not limited to, the real property owner / facilities manager, an experience JOC consultant or peer organization, and legal resources familiar with Job Order Contracts.
[1] This document is not providing, nor attempts to provide any form of legal advice. Please seek appropriate legal counsel.